Thursday, May 25, 2017

(BUSINESS
WIRE)-- Providing another example of its innovative solutions within a
developing LNG market, Koch Supply & Trading (KS&T) today
announced the completion of the first of multiple and regular
ship-to-ship (STS) LNG transfers with private Chinese company JOVO and
Malaysian ship owner MISC. The agreement is the first of its kind for
KS&T, JOVO and MISC and is the first LNG STS transfer in the
Philippines.

With LNG STS transfers traditionally serving more of
an operational role, this project represents a key commercial milestone
as a recurring STS transfer demonstrates the commercial potential of
such activities. Such operations open new markets for exporters and
provide new supply sources to those with LNG requirements. In this
example, the mother vessel loads cargo from Australia before
transferring it to a smaller daughter vessel at Subic Bay in the
Philippines. The operation is carefully managed by Teekay Marine
Solutions with Teekay and MISC providing their extensive LNG experience
to administer a safe and successful transfer. The cargo is then
delivered to JOVO’s Chinese terminal where it is distributed by truck to
one of their many industrial or commercial customers in Southern China.

“This
partnership between first class ship owners, industry leading STS
service providers and innovative LNG consumers allows companies in
developing markets to gain new access to global volumes and a wider
variety of logistics and infrastructure players,” said Peter Leoni,
director of trading at Koch Supply & Trading.

“Looking at how
the LNG market is developing,” Tim Mendelssohn, LNG freight and
operations manager at Koch Supply & Trading continued, “we are
challenging the existing business model as a problem-solving,
solution-oriented agent for LNG ship-to-ship transfers in emerging
economies around the globe, reducing barriers to market entry.”

“This
project’s complexity, along with a commitment to safe and compliant
operations have created an inherently multinational agreement involving
multiple 'best in class' stakeholders including MISC, Teekay Marine
Solutions, KLAW LNG and JOVO,” said Chris Huang, international manager
from JOVO.

Lu Yuan, general manager of international business for
JOVO added, “We appreciate the significant role played by Koch Supply
& Trading in orchestrating this historic agreement. Together, we are
showing that it is possible for multinational corporations to work
together to achieve mutual benefit for society. We hope this arrangement
with Koch will be the first of many such innovations in the industry.”

Stephen
Davidson, vice president – LNG, Teekay Marine Solutions stated, “We
welcomed this opportunity to work with Koch to bring this project
online, and in working with all entities to ensure the operation was
conducted in a safe manner following all industry guidelines and
recommendations. We hope this is the start of a new long term
partnership with all parties building on the work that has already been
completed to bring this first historic job to fruition. We are pleased
to be involved in yet another groundbreaking project for the LNG
industry.”

JOVO
Group Co., Ltd. Guangdong is a private Chinese company, founded in 1990
having started its business in LPG trading. Over the last 25 years,
JOVO has become an industry leading energy company with a focus on clean
energies, such as LPG, LNG and DEM. They are involved in the whole
industrial supply chain, including international purchase, storage,
processing, production, logistics and sales. At present, JOVO Group owns
a fully operational receiving terminal in the Pearl River Delta, China
and can store and distribute LNG, LPG, Methanol, Oil and several kinds
of gas and petroleum products. Outside of the oil majors, JOVO’s LNG
project is the first and only privately funded terminal in China under
operation. Learn more at www.jovo.com.cn.

About MISC

MISC
Berhad (MISC) was incorporated in 1968 and is a world leading provider
of international energy related maritime solutions and services. We take
pride in our asset and service reliability, commitment to uphold the
highest standards of Health, Safety and Environment (HSE), fostering a
culture of excellence amongst our employees, operating responsibly and
caring for the environment as well as making a positive difference to
the communities in which we operate.

The principal businesses of
the Group comprise energy shipping and its related activities, owning
and operating offshore floating solutions, marine repair and conversion,
engineering and construction works, port and terminal services as well
as maritime education and training.

MISC Group’s fleet consists
of more than 110 owned and in-chartered LNG, Petroleum and Product
vessels; as well as 14 floating facilities. The fleet has a combined
capacity of approximately 12 million dwt.

Aside from its shipping
business, maritime education is a priority for the Group and its
Malaysian Maritime Academy (ALAM) is ranked amongst the top 10% of the
world’s Maritime Education and Training (MET) institutions.

Since
2014, we have been a proud constituent of the FTSE4Good Bursa Malaysia
Index, a testament to our sustainability performance and strong
Environmental, Social and Governance (ESG) practices.

About Teekay Marine Solutions

Teekay
Marine Solutions (branded as LNGSTS) are 100% owned by Teekay Tankers.
They are an industry leading STS service provider with a dedicated LNG
department specialising in LNG transfers, project development,
consultancy and management of terminals and facilities.

Teekay
Marine Solutions have gained their knowledge of LNG STS Transfers and
Terminal Operations through being involved with many of the world’s most
innovative FSRU and FSU/FSRU projects.